BOURBON Continues Growth. Revenues Rise. (France)

BOURBON, a company which offers the most demanding oil and gas companies a comprehensive range of surface and subsea marine services for offshore oil and gas fields and wind farms, has announced first quarter 2013 results.

“In a favorable context for the oil & gas and related services industry, BOURBON is continuing to grow. Daily rates for vessels with contracts renewals continue trending upwards,” says Christian Lefèvre, Chief Executive Officer of BOURBON. “In the first quarter, BOURBON took delivery of 4 supply vessels, 1 IMR vessel and 5 crewboats. The activity was affected by the seasonal impact of the North Sea winter and the South-East Asia monsoons. 23 classification dry-docks were scheduled for the supply and IMR vessels during this period of reduced activity.

“The remaining quarters of the year will see a 25% decrease in the number of classification dry-docks in a market stimulated by growing demand for vessels.”

Compared with the first quarter of 2012, BOURBON’s revenues grew by 13.4% to 315.1 million euros (+14.3% at constant exchange rates), benefiting from 35 new vessels joining the fleet (of which 20 crewboats). This growth occurred in all segments (particularly in Shallow water offshore).

Compared with the fourth quarter of 2012, BOURBON’s revenues were stable, impacted by the number of planned classification dry-docks over the period, especially in areas with a highly seasonal impact (winter in the North Sea and monsoon period in Asia).

During the quarter, BOURBON took delivery of 10 new vessels (1 IMR, 1 Deepwater offshore, 3 Shallow water offshore and 5 Crewboats), while 3 crewboats were taken out of the fleet during the period.

MARINE SERVICES

Compared with the first quarter of 2012, Marine Services revenues were up 16.4% to 258.5 million euros, a particularly marked increase in Shallow water offshore.

Compared with the fourth quarter of 2012, the fleet’s average utilization rate was affected during the period by a number of planned classification dry-docks, the transit of vessels between regions, and a seasonal impact.

Compared with the first quarter of 2012, revenues from Deepwater offshore vessels in the first quarter of 2013 were up by 7.5% to 93.0 million euros, benefiting from 4 vessels joining the fleet and the increase in daily rates in the majority of BOURBON’s areas of operation. However, this increase was limited by a decline in average utilization rates due to transit of “large PSVs” from shipyards to operating zones in Europe and planned classification dry-docks in the North Sea.

Compared with the fourth quarter of 2012, revenues were stable. The utilization rate was strongly impacted by the classification dry-docks mentioned above and reduced activity due to the winter season in the North Sea.

Compared with the first quarter of 2012, revenues for the first quarter of 2013 for Shallow water offshore vessels were up significantly (+31.7%) to 92.8 million euros, boosted particularly by the entry into service of new vessels in recent months and supported by higher average utilization and daily rates in all its main operating regions (Asia, West Africa, Middle East).

Compared with the fourth quarter of 2012, revenues were up 1.8%, despite the impact of classification dry-docks and the transit of new vessels from the shipyards to their operating areas leading to a reduction in utilization rates. Overall, average daily rates were stable across all operating regions from one quarter to the next quarter.

Compared with the first quarter of 2012, revenues in the first quarter of 2013 for Crewboats were 11.8% higher at 72.8 million euros, due to the increased size of the fleet and the increase in average daily rates, especially for the larger vessels in the segment (+13.2%).

Compared with the fourth quarter of 2012, revenues were slightly down by 1%, mainly due to reduced activity in West Africa in the first three months of the year.

SUBSEA SERVICES

Compared with the first quarter of 2012, revenues in the first quarter of 2013 were up by 12.9% to 51.6 million euros, benefiting in part from 2 new Bourbon Evolution 800 series vessels joining the fleet.

Compared with the fourth quarter of 2012, the advent of the third vessel in the Bourbon Evolution 800 series which began as soon as it left the shipyard its charter contract in South-East Asia, emphasizing the success of this series, offset the loss of revenue due to planned classification dry-docks and the repositioning of a vessel in South-East Asia during the period.

It should be noted that BOURBON has strengthened its position in Asia with 3 IMR vessels now operating in this area.

OUTLOOK

Robust investments in Exploration/Production by oil and gas clients continue to stimulate demand for offshore vessels.

In Shallow water offshore, the combined effects of an increase in demand for vessels, clients’ stricter criteria for the selection of vessels and operators, and a reduction in the number of vessels coming out of shipyards in this segment should have a positive impact on utilization and charter rates for BOURBON vessels.

In Deepwater offshore, the high number of new vessels coming out of the shipyards should only marginally impact BOURBON due to high contract coverage of the fleet BOURBON is operating in this segment.

The strategy of fleet standardization, the focus on crew training through the use of simulators, and the systematization of maintenance and procurement procedures will continue to underpin BOURBON’s operational and financial performance.

[mappress]
May 02, 2013